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In order for it to be a "bubble", the collapse needs to be severe enough that it has a downward momentum. Enough so that even companies with good business model
by paulhodge 11y ago
In order for it to be a "bubble", the collapse needs to be severe enough that it has a downward momentum. Enough so that even companies with good business models are affected & become undervalued.
I don't see that happening. There are lots of companies with strong business models (Google/Apple/Amazon/Etc) which will be fine if all the revenueless startups suddenly go away. They'll probably be happy they get to hire up all the newly unemployed talent.
Remember.. just because a downward correction is coming, doesn't mean it's a bubble.
- pyre 11y agoPeople are more likely to refer to it as a bubble because of the 2000 "Dot Com Bubble." While 2008 was a "housing bubble" most people just refer to it as the 2008 recession. People are just most apt to draw comparisons between the tech industry now and the tech industry in 1998-2000, so referring to it as a bubble happens.